Deighton says the idea of marketing myopia is still very applicable today, in part because the original idea wasnt very prescriptive. Sure, the modern consumer's shopping cart is often filled with all manner of objectively low-value products, but they still cater to specific needs, even if they are purely psychological. That is not to say that Nokia did not have its own operating system, called Symbian. The sad irony of Nokia's decay was that it had been one of the freshest and most innovative companies in cellular technology once. Marketing myopia is a marketing failure of not giving attention towards the needs and demands of consumers, in fact fulfilling the requirements of a firm of selling services or products . Small businesses leaders can use the following strategy to ensure that their operations remain as relevant and exciting as possible. Re-imagining customer experience through design, data, and technology. The article stated that three former Under Armour executives said that decisions around products were often driven by instinct, rather than consumer analysis of the market. Another great way to confirm your customer assumptions is to put a positive spin on complaints. Enter Netflix, a tiny upstart with an opposing business model. Myth 3: We can protect ourselves through mass production. Remember that what works for your business today might not do so tomorrow. They began to produce new products specifically for women and shift their marketing strategy. After all, Levitt's original warnings didn't come with a detailed guide. Most marketing experts will tell you that marketing myopia is still something businesses and marketing teams need to be aware of today. Your essay must include an introduction. According to the writer, businesses will do better in the end if they focus their attention on meeting customers' needs rather than on selling products. These companies have all been able to successfully adapt their offerings to meet the changing needs of their customers. Most people will read articles published online, and thankfully many newspapers and magazines have made the digital migration. Its a difficult road to tread but no one said your business would be easy. If anything is more than ten feet away from me I have trouble seeing it. Companies like Nokia, Kodak, and Blockbusters believed that their products would always be desirable. The most likely cause of their decline is Marketing Myopia. While Under Armour has an advantage over up-and-coming companies with newer visions and disruptive concepts, if they continue to focus on their products and not invest in their customers needs, they will miss out on this opportunity to meet the ever-increasing millennial demand. The Dot Com Bubble was almost two decades ago. It would be easier if consumers stayed the same youd only have to do market research once, identify the strategies that worked and stick with them. You can only acquire an international learning resource once you enter the global marketing culture and community. Long before phones had large, high-resolution touchscreens and countless apps, Finnish tech company Nokia paved the way for mobile phone innovation. The consumer market was growing at an alarming rate as people had more money than ever before to spend on things like mobile phones. Learn how your comment data is processed. The gist of Levitt's rhetoric described a severe issue that many businesses were experiencing, namely unsustainable commercial practices. A daily dose of irreverent and informative takes on business & tech news, Turn marketing strategies into step-by-step processes designed for success, Spotlighting bold Black women entrepreneurs who have scaled from side hustles to profitable businesses, For B2B reps and sales teams who want to turn complete strangers into paying customers, Get productivity tips and business hacks to design your dream career, Free ebooks, tools, and templates to help you grow, Learn the latest business trends from leading experts with HubSpot Academy, All of HubSpot's marketing, sales CRM, customer service, CMS, and operations software on one platform. To make sense of Kodak's damning preference for film, let's see what former Kodak market intelligence head Vince Barabba had to say on the matter. As a result, they lost market share and eventually filed for bankruptcy in 2012. Marketing myopia can affect any business, regardless of its size. But by 2009, the company had filed for bankruptcy. If you click an affiliate link and subsequently make a purchase, we will earn a small commission at no additional cost to you (you pay nothing extra). IBM is best known for its technological contributions to society. The New York Times article also states that Under Armours CEO and Founder Kevin Plank and his top lieutenants believed that nothing could stop the companys rise. When a business overemphasizes selling, it can easily fall into the marketing myopia trap at the cost of marketing research and action. Blackberry A more relevant term might be ecosystem rather than industry. The Curry 2 shoes had poor sales because the company flooded the market with the product. Electronics A mobile device company that believes customers need a smart phone when what they really need is access to computing, communications and networks from anywhere. The millennial generation has shown a preference for casual sports attire that could increase the demand for sportswear. Given that Levitt coined the term back in 1960, you might be wondering whether marketers have a different understanding of marketing myopia. Needless to say, EarthLight didn't sell very well. An example of competition is Google and DuckDuckGo. Its the same way some people look at marketing. Let's now look at one company that seems to have taken Levitt's advice very seriously. It said the packs needed to be squeezed under high pressure only the juicing machine could produce. Except that it didn't join the Google gang as you might have expected. Finance 4. Sports Marketing Strategies: A Game Plan to Win Fans - LinkedIn This is all to say that keeping your finger on the pulse is key to avoiding a myopic business. When eCommerce first took off, people like the astronomer Clifford Stoll infamously expressed their doubts that it would ever replace in-store purchasing. Your email address will not be published. A focus on meeting the needs and desires of the consumer. There is no doubt that Levitt believed the entire corporation must be viewed as a customer-creating and customer-satisfying organism, and Deighton admits that this is one of the potential pitfalls of Levitts original idea: it puts great trust in the consumer. In his original article, Levitt acknowledged how difficult it can be to listen to customers; he wrote: Consumers are unpredictable, varied, fickle, stupid, shortsighted, stubborn, and generally bothersome. But Smith, Drumwright, and Gentile go even further, arguing that its not just about listening to consumers but about hearing all of the stakeholders who contribute to your companys success, such as employees, suppliers, shareholders, competitors, media, and community members. The most common cause is a lack of understanding of what customers really want. Kodak probably remembers. Shiseido scoured the local industry for relevant resources but found that it was too underdeveloped to be of much help. You may wear a suit to an important meeting. They get lulled into thinking theyre in a growth industry, which, according to Levitt, dont exist. Understand your customers Jobs To Be Done, Send out regular customer development surveys and have conversations, Understand the jobs to be done of your customers and tailor it to your customers, Continuously run customer development surveys to stay up to day with shifting consumer trends. You can also look at the online landscape and how users are consuming content. To clear your definition and start again with a white sheet can make or break a company. There are plenty more ways to avoid marketing myopia, but this is a fantastic start. Just a few years ago, Juicero received millions of dollars from investors and was considered a Silicon Valley darling. Marketing myopia can also be caused by a lack of investment in marketing research. Companies need to give a more consumer-centric goal to their business and think beyond just selling their products. Myth 4: Technical research and development will ensure our growth. A tactic that it wields to gain the latest American, Asian, and European technology and opportunities. Of course, its not all doom and gloom for the restaurant industry. Free and premium plans. There will always be something that competes with sport. Theres debate about exactly what percentagesome say it is 75%, others claim its closer to 95%. Thankfully for Kodak, Barabba established that the business had around a decade to respond to this pivotal market shift. If your business wants to market its green products better, here are some of the best ways to do it. The genius of the original article is that it is so easy to be myopic when it comes to marketing, says Deighton. Over time, it compounds. Google isnt enough, either. The rental chain peaked in the 90s with more than 9,000 outlets within the United States alone, enjoyed 65 million loyal customers, and had an international employee base of 84,000 people. Dont send it to your entire customer base at once. As the term suggests, marketing myopia is a lack of marketing foresight. The barrier to entry into this market is high due to the steep research and development costs that are required. Free and premium plans, Sales CRM software. In reality, its a mix of both. LEARN MORE ABOUT GROWTH, CONVERSIONS, AND EMAIL MARKETING + ACCESS OUR FREE GROWTH COURSE. What are four examples. The company was so focused on its existing business model that it failed to adapt to the changing marketplace. Thats the tail end of it all. In 2004, Nokia's sales grew by 25 percent to 1.5 billion euros ($2 billion). I recommend the insightful book When Coffee and Kale Compete by Alan Klement to better understand the Jobs To Be Done Theory. Under Armor has "Marketing Myopia" | by Chad Alessi - Medium The New York Times published an article on January 29th, 2020, entitled How Under Armour Lost Its Edge. You can read the full article here. If he is unable to do this, Under Armour will experience the same fate as the railroad industry and other businesses that suffered from Marketing Myopia. Learn about the definition of marketing myopia and its importance, who created and coined the concept, and some examples of unsuccessful companies that had marketing myopia. You've successfully signed in. It pioneered many of the digital camera technologies that formed the new industry. Its not always Western companies that look to the East for inspiration, however, as was the case of the Japanese skin care products business, Shiseido. A better understanding of marketing myopia will reveal your potential marketing blind spots. Where blogging was 10 years ago podcasting is now. You can do this through surveys, but a better way would be to have personal connections. Mobile phones were rapidly becoming a fashion accessory in countries like Japan, beyond their functional uses. Today, I cook 90% of my meals, Im a new (and successful) plant mom, and orange is more my vibe now. Examples of poor marketing management that led to marketing myopia include: 1. Remember that selling is a well-oiled machine made of many nuts and bolts. Most businesses want to grow and be successful, but what they often don't realize is that success doesn't happen overnight. Take the topic of social responsibility. A company struck by marketing myopia will often see its consumer base gradually (or even quickly) shift to another product or service. For example, if a company produces a certain type of computer and focuses on that production, they might miss new technology changes. As Deighton explains. Chapter 1: The Special Nature of Sport Marketing by Erika Vumback - Prezi The reality is that marketing myopia can eventually cause your business to fail. Philips marketed the "Marathon" lightbulb with a five-year lifespan. Weve covered many examples of rigid companies that failed or refused pivot. That year, Nokia finally parted ways with its stuffy operating system. Market penetration is a fickle process, after all. During its most successful years, oil was cheap but there was no incentive to develop products that meet the needs of its customers or deliver top tier service. It became a global industry leader. This can happen when businesses become too comfortable with their current products and services and fail to adapt to new trends or technologies. But even as digital photography slowly became the norm for everyday people, Kodak continued to cling to film. Recall the times when you had to stuff a box of paper business cards in your car. Imagine yourself as an international prospector searching for developing technology and trend resources. You can get by doing what youve always done. -Arrogance and laziness. Take This Course By Wharton University , Click Here For A Course In Buyer Persona Creation , The Future Of Sales: 50+ Social Selling Statistics (2023 Edition), The 15 Best Salesforce Integrations For Sales, Marketing, HR & SMBs, 130+ Hubspot Statistics For Modern Marketers In 2023, Exploring Enterprise Form Solutions: A Comprehensive Guide for Business Owners, Top 17 Gamification Software In 2023 (Free & Paid), TikTok Monetization: How To Make Money On TikTok, 21 Best Microsoft Teams Alternatives (Free & Paid), Ensure that the research attached to your product is, While a third-party eco-certification for your products. Its a theory that states companies focus on their needs and short term growth strategies. There are countless examples just like this. Organizations invest so much time, energy, and money in what they currently do that theyre often blind to the future. In the mid to late ninetys the internet was the only place to be. What is marketing myopia? This surveillance lets you calculate how to best competitors offerings and pull more customers. Successful companies focus on customer needs, not their own products and services, which canand willbe replaced by competitive alternatives, either ones they make themselves or those produced by existing or potential competitors. Some examples of companies that have avoided marketing myopia are: Apple, Amazon, and Netflix. Sadly for the Finnish dinosaur, this decision was too little, too late. While your product or service might be thriving in today's market, that doesn't mean that consumers will always need it. Read world-renowned marketing content to help grow your audience, Read best practices and examples of how to sell smarter, Read expert tips on how to build a customer-first organization, Read tips and tutorials on how to build better websites, Get the latest business and tech news in five minutes or less, Learn everything you need to know about HubSpot and our products, Stay on top of the latest marketing trends and tips, Join us as we brainstorm new business ideas based on current market trends. After a while, you started to do it with trains. Its an intermediate step between interacting with their brand and becoming a customer. In it, Theodore Levitt, a Harvard Business School Professor, introduced the now-famous question, What business are you really in?. You not only need to establish a related need in the modern context but the future one, too. Theres one note about customer development though, you cant truly innovate if you only follow what they say. They should be built around solving a common problem rather than a potential or even imaginary one. Not listening to your customers' suggestions, requests, or feedback and, as a consequence, not improving your products or services, will gradually cause your business to develop marketing myopia. I love it. You ask your existing and potential customers a series of questions about your products and services to better understand how theyre using it and how they feel about it. Generally, this myopic mindset would transpire into the obsolescence of oil. Marketing itself is the field in which research is conducted into how the market can best be conquered and where customers also remain customers through repeat purchases and related products. From there, they branched out into sleepwear that focused on helping athletes recover from workouts. As mentioned earlier, many companies assume that they are members of a growth industry. Taxi companies lost sight of the immediate needs of their customers. Any marketer is obligated to be concerned with programs, tactics, campaigns, etc. What is Marketing Myopia? Concept and Examples Earn badges to share on LinkedIn and your resume. While it is important to focus on a customer's needs, your stakeholders are equally important, like your employees, broader community, suppliers, and competitors. It produced an expensive juicing machine with expensive refill packs. - The belief that growth is assured by an expanding and more affluent population. Marketing myopia is a term that describes the need for businesses to future-proof their products or services' usefulness instead of merely focusing on selling said offerings. . Therefore, he encouraged executives to switch from a production orientation to a consumer orientation. As Levitt used to tell his students, People dont want a quarter-inch drill. Theres a lot of information about it around the internet so I wont go too deep. IBM has stated that this is its way of conceptualizing beyond its main offerings to provide valuable communications beyond information processing. I talked with John Deighton, a professor at Harvard Business School and an authority on consumer behavior and marketing, to better understand this classic concept, its origins, and its relevance to organizations today. The reason why marketing myopia affects businesses is that they lose touch with their customers. The transportation industry was soon flooded with air travel and other more convenient forms of public transportation. Once you know where your business stands in the market, you can begin redesigning your offerings to win over more customers strategically. Levitt, Theodore (1960), Marketing Myopia, Harvard Business Review, 38 (July/August), 4556. According to Theodore Levitt, "There is no such thing as a growth industry." Each year, a tragic number of product launches fold. As a result, Old Spice was able to avoid the decline that many other companies have experienced. Marketing myopia is a shortsighted approach to business that excludes customer needs. Many companies are afraid to go against the grain and dabble with disruptive innovation. A Refresher on Marketing Myopia - Harvard Business Review Regardless of which number is right, there is no doubt that a lot of time and energy go into marketing products that will no longer exist in a year. Under Armor exhibited signs of accepting this myth with the mass production of their Curry 2 shoes. The phrase was coined in 1960 by Theodore C. Levitt. If you haven't ever heard of Windows Phone, that's because it was a titanic failure, and Nokia suffered greatly with this now discontinued operating system. They couldnt get their business model or message right and went bust in two years. The following are the four myths Levitt discusses in his article: Myth 1: An ever-expanding and affluent population will ensure the companys growth.